we are getting closer, page-20

I’ve just gone over FAR ANN leading up to the last extension. Below is an extract from FAR ANN very early 2009.

FAR is pleased to announce that following meetings held in Dakar last week it has received formal approval from Petrosen (Senegal’s National Oil Company), to increase its working interest to 90 percent and assume Operatorship under the Contract for Exploration and Hydrocarbon Production Sharing covering the Rufisque and Sangomar and Sangomar Deep offshore blocks.
Following meetings with Petrosen, a meeting was also held with the Minister of Energy for the Republic of Senegal to confirm FAR’s appointment as Operator, its increased working interest and to provide an activity update since Ministerial approval of a one year extension to the First Renewal Period was granted.
FAR is pleased to advise that following the grant of the extension and as foreshadowed in earlier ASX releases it has received a third written offer from a major to participate in the exploration of these offshore blocks. Negotiations are continuing.
The increased interest in the blocks has placed FAR in a stronger negotiating position in the farmout process that was delayed by the need to obtain an extension.

OK……………

Towards the bottom , it clearly states “ received a third written offer from a major “ …………two months later FAR ANN of a deal with SHELL.

This is clearly a indictor that ME/FAR had unofficial told Petronsen/Senegal Government that Shell are willing on certain conditions to enter into a JV, reason why extension was granted. But why the increase in share holding to 90% to FAR………………. ?

This is my spin on that ……….

Far were well aware , that Shell likely would take the option and buy FAR out and continued with Petronsen as its only JVP. SHELL being a major, why would it want FAR. The cost to SHELL , would have been a drop in the ocean. Why did Shell insist on having that clause? With the increase to 90% ME obtained a great leverage and this was granted on Shell coming to the table.

Petronsen have a free farm in major – Senegal , great exposure with Shell guaranteed Farm in – Far win with MAJOR payout ……………….

Any way it didn’t turn out that way and it was a punt by ME and a bloody good one!

What’s important now …………. I’m convinced deals are going on behind closed doors and Senegal will be granting lease extension on FAR bringing something major and honestly this could be numerous scenarios. But , it’s a clear indictor from above ANN and IN HIND SIGHT , that extension to lease’s are on deals that benefit Senegal/Petronsen and they would be closely involved in all deals now.

Bottom line how good a deal can ME find for ALL!

If lease is not granted , its on a better deal being offered to Senegal and China are the only threat IMO . They would not hesitate to pay the 20 odd million for data from FAR. But I’m hoping Senegal democracy government is more conscious of China’s and its deals with neighboring countries and run with more democracy / western companies.
As Australian goverment is.

It tends to go to the wire with FAR , so hard to put a date!

Good luck guys , we deserve some good news!